5 Boroughs Partnership NHS Foundation Trust Annual ... - Monitor

Notes to the accounts
1. Accounting Policies and Other Information
Monitor has directed that the financial statements of NHS Foundation
Trusts shall meet the accounting requirements of the NHS Foundation
Trust Annual Reporting Manual which shall be agreed with HM Treasury.
Consequently, the following financial statements have been prepared in
accordance with the 2011/12 NHS Foundation Trust Annual Reporting
Manual issued by Monitor. The accounting policies contained in that
manual follow International Financial Reporting Standards (IFRS) and HM
Treasury's Financial Reporting Manual to the extent that they are
meaningful and appropriate to NHS Foundation Trusts. The accounting
policies have been applied consistently in dealing with items considered
material in relation to the accounts.
1.1 Accounting Convention
These accounts have been prepared under the historical cost convention
modified to account for the revaluation of property, plant and equipment,
intangible assets, inventories and certain financial assets and financial
liabilities.
1.2 Income
Income in respect of services provided is recognised when, and to the
extent that, performance occurs and is measured at the fair value of the
consideration receivable. The main source of income for the Trust is
contracts with commissioners in respect of healthcare services.
Where income is received for a specific activity that is to be delivered in
the following financial year, that income is deferred.
Income from the sale of non-current assets is recognised only when all
material conditions of sale have been met and is measured as the sums
due under the sale contract.
1.3 Expenditure on employee benefits
Short-term employee benefits
Salaries, wages and employment-related payments are recognised in the
period in which the service is received from employees. The cost of annual
leave entitlement earned but not taken by employees at the end of the
period is recognised in the financial statements to the extent that
employees are permitted to carry forward leave into the following period.
Pension Costs
NHS Pension Scheme
Past and present employees are covered by the provisions of the NHS
Pensions Scheme. The scheme is an unfunded, defined benefit scheme
that covers NHS employers, general practices and other bodies allowed
under the direction of the Secretary of State in England and Wales.
Annual Report and Annual Accounts 2011-12 185